You maintain a decent Bank Balance! Great.......
Very soon you will get a call from your Bank pitching you an Insurance product or you may be pitched an Insurance product the moment you enter your Bank for some work.
This is also Great! You get the benefit of buying all kinds of Financial Products under one roof. That's what the Bank's are aiming at. Becoming a Financial Powerhouse.
Insurance is never bad. Personally I feel Insurance is a great product and covers your Liabilities. The concept dates hundreds of years back and started as a cover for Merchants sending their goods via Ships. Now Insurance is a vast field and covers are available for a lot of activities and products in our life. Whenever I am advising somebody I always tell him to get Insured first to cover his Liabilities and then look for other investments.
Hence whenever you are pitched by your Banker for Insurance donot run away or buy without understanding. I never advise anybody to avoid understanding the Product in Bank as you never know when you come across something good.
Ask for the following Insurance products from your Banker to make it a part of your Portfiolio and help you cover your Liabilities.
Term Insurance: Whenever you are pitched for an Insurance by your Banker ask for a Term Insurance. The Banker may approach you for a Traditional Plan or and Endowment. But Term Insurance is far better than both. It is a Pure risk cover and not an Investment option hence at low cost you get a fairly high coverage securing your liability in case of an unfortunate event. Child Plans, Retirement Plans or any other similar plan may not be beneficial as they can be structured through a combination of Term Insurance, Mutual Funds, FD's etc.
Health Insurance: As Life expectancy has gone up so has the cost of medical facilities. A Health Insurance is a perfect Tool to secure your medical liabilities. Healthy people usually avoid this saying that we have never taken a claim so why should we pay for Health Insurance. Insurance company is just making money out of it. My take: Do it like a charity for yourself. Illness never informs before happening. You may want to set aside some corpus for Health and do away with Health Insurance. Well not a bad idea till you have a heavy corpus dedicated to your medical expenses. This is possible iis you are extremely rich or in later part of life when you have accumulated sufficient corpus for the same and Health Insurance coverage is insignificant compared to that corpus. Till that time always keep a Health Insurance and buy it early right from the time you start working.
Criticall Illness: Important coverage to cover some extremely critical illnesses. It covers 8 to 10 illnesses depending on the company and pays the insured on detection of any of these problems subject to certain conditions.
Home Insurance: It covers your home and items in your house against burglary, fire and act of god perils. Most people ignore this but I suggest we take one to cover against a negligible probability of mishap.
Vehicle Insurance: If your Cars or Two wheeler are not insured. No need to explain why we need them. Mandatory insurance for every vehicle owner.
So next time you are being pitched for Insurance from your Banker donot run away or donot buy the product blindly. Ask for the products mentioned above as per your requirements and cover your liabilities. Never buy Insurance for Investment purposes. This will curtail your coverage and will let you fall into a false sense of satisfaction that you are Insured which probably wont suffice at the time of actual need. There are Mutual Funds, FD's and other investment products to suit your Investment requirements. Insurance is just a risk coverage and should be taken for that purpose only.
Very soon you will get a call from your Bank pitching you an Insurance product or you may be pitched an Insurance product the moment you enter your Bank for some work.
This is also Great! You get the benefit of buying all kinds of Financial Products under one roof. That's what the Bank's are aiming at. Becoming a Financial Powerhouse.
Insurance is never bad. Personally I feel Insurance is a great product and covers your Liabilities. The concept dates hundreds of years back and started as a cover for Merchants sending their goods via Ships. Now Insurance is a vast field and covers are available for a lot of activities and products in our life. Whenever I am advising somebody I always tell him to get Insured first to cover his Liabilities and then look for other investments.
Hence whenever you are pitched by your Banker for Insurance donot run away or buy without understanding. I never advise anybody to avoid understanding the Product in Bank as you never know when you come across something good.
Ask for the following Insurance products from your Banker to make it a part of your Portfiolio and help you cover your Liabilities.
Term Insurance: Whenever you are pitched for an Insurance by your Banker ask for a Term Insurance. The Banker may approach you for a Traditional Plan or and Endowment. But Term Insurance is far better than both. It is a Pure risk cover and not an Investment option hence at low cost you get a fairly high coverage securing your liability in case of an unfortunate event. Child Plans, Retirement Plans or any other similar plan may not be beneficial as they can be structured through a combination of Term Insurance, Mutual Funds, FD's etc.
Health Insurance: As Life expectancy has gone up so has the cost of medical facilities. A Health Insurance is a perfect Tool to secure your medical liabilities. Healthy people usually avoid this saying that we have never taken a claim so why should we pay for Health Insurance. Insurance company is just making money out of it. My take: Do it like a charity for yourself. Illness never informs before happening. You may want to set aside some corpus for Health and do away with Health Insurance. Well not a bad idea till you have a heavy corpus dedicated to your medical expenses. This is possible iis you are extremely rich or in later part of life when you have accumulated sufficient corpus for the same and Health Insurance coverage is insignificant compared to that corpus. Till that time always keep a Health Insurance and buy it early right from the time you start working.
Criticall Illness: Important coverage to cover some extremely critical illnesses. It covers 8 to 10 illnesses depending on the company and pays the insured on detection of any of these problems subject to certain conditions.
Home Insurance: It covers your home and items in your house against burglary, fire and act of god perils. Most people ignore this but I suggest we take one to cover against a negligible probability of mishap.
Vehicle Insurance: If your Cars or Two wheeler are not insured. No need to explain why we need them. Mandatory insurance for every vehicle owner.
So next time you are being pitched for Insurance from your Banker donot run away or donot buy the product blindly. Ask for the products mentioned above as per your requirements and cover your liabilities. Never buy Insurance for Investment purposes. This will curtail your coverage and will let you fall into a false sense of satisfaction that you are Insured which probably wont suffice at the time of actual need. There are Mutual Funds, FD's and other investment products to suit your Investment requirements. Insurance is just a risk coverage and should be taken for that purpose only.
